Vantage Drilling International Reports First Quarter for 2021

5/6, 12:00 PM (Source: GlobeNewswire)

HOUSTON, May 06, 2021 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $36.0 million or $2.74 per diluted share for the three months ended March 31, 2021, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $30.6 million or $2.33 per diluted share for the three months ended March 31, 2020.

As of March 31, 2021, Vantage had approximately $152.2 million in cash, including $11.9 million of restricted cash, compared to $154.5 million in cash, including $12.5 million of restricted cash at December 31, 2020. The Company used $15.4 million in cash from operations in 2021 compared to $31.3 million used during the same period of 2020.

Ihab Toma, CEO, commented: “The first quarter appeared to mark the early stages of a recovery for the industry with signs of improving tendering and contract activity.  Indeed, we added approximately $127 million of backlog during the quarter. We were able to build off of the momentum that began early this year and, in March, we successfully reactivated the Topaz Driller to begin its campaign in Montenegro.  As previously indicated, we expect to reactivate the Sapphire Driller and Aquamarine Driller later in the second quarter 2021 to begin their drilling campaigns in West Africa and Southeast Asia, respectively.” 

Mr. Toma continued, “At current levels of Brent prices, we believe that shallow water activity is stabilizing and we remain optimistic that deepwater could begin to recover later this year. As always, we continue to focus on leveraging our efficient management platform, to put our rigs back to work while also managing rigs for others, operate safely and efficiently and preserve cash while delivering high caliber service to our clients.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and five premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells globally for major, national and independent oil and gas companies. Vantage also markets, operates and provides management services in respect of, drilling units owned by others.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Vantage disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Public & Investor Relations Contact:

Douglas E. Stewart
Chief Financial Officer and General Counsel
Vantage Drilling International
C/O Vantage Energy Services, Inc.
777 Post Oak Blvd., Suite 800
Houston, Texas 77056
(281) 404-4700


Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
    
 Three Months Ended March 31,
 2021
 2020
Revenue   
Contract drilling services$17,725  $44,319 
Reimbursables and other 2,441   7,137 
Total revenue 20,166   51,456 
Operating costs and expenses   
Operating costs 25,357   48,555 
General and administrative 5,495   7,170 
Depreciation 14,125   18,016 
Total operating costs and expenses 44,977   73,741 
Loss from operations (24,811)  (22,285)
Other (expense) income   
Interest income 100   701 
Interest expense and other financing charges (8,510)  (8,420)
Other, net (614)  2,355 
Total other expense (9,024)  (5,364)
Loss before income taxes (33,835)  (27,649)
Income tax provision 2,162   2,921 
Net loss (35,997)  (30,570)
Net (loss) income attributable to noncontrolling interests (13)  2 
Net loss attributable to shareholders$(35,984) $(30,572)
Loss per share   
Basic and Diluted$(2.74) $(2.33)
Weighted average ordinary shares outstanding,   
Basic and Diluted 13,115   13,115 
    
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
    
 Three Months Ended March 31,
 2021
 2020
Operating costs and expenses   
Jackups$14,149  $21,474 
Deepwater 7,244   20,039 
Operations support 2,212   3,437 
Reimbursables 1,752   3,605 
 $25,357  $48,555 
Utilization   
Jackups 30.7%  88.9%
Deepwater 49.1%  61.8%


Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
    
 March 31, 2021 December 31, 2020
    
ASSETS   
Current assets   
Cash and cash equivalents$140,381  $141,945 
Restricted cash 7,798   7,996 
Trade receivables, net of allowance for doubtful accounts of $5.0 million, respectively 25,147   24,717 
Materials and supplies 49,456   49,861 
Prepaid expenses and other current assets 20,538   29,151 
Total current assets 243,320   253,670 
Property and equipment   
Property and equipment 795,349   794,944 
Accumulated depreciation (292,684)  (278,562)
Property and equipment, net 502,665   516,382 
Operating lease ROU assets 3,583   3,997 
Other assets 14,230   12,126 
Total assets$763,798  $786,175 
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Current liabilities   
Accounts payable$24,588  $25,466 
Other current liabilities 39,994   24,734 
Total current liabilities 64,582   50,200 
Long–term debt, net of discount and financing costs of $4,371 and $4,781, respectively 345,629   345,219 
Other long-term liabilities 14,293   15,011 
Commitments and contingencies   
Shareholders' equity   
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, respectively 13   13 
Additional paid-in capital 633,727   634,181 
Accumulated deficit (295,639)  (259,655)
Controlling interest shareholders' equity 338,101   374,539 
Noncontrolling interests 1,193   1,206 
Total equity 339,294   375,745 
Total liabilities and shareholders' equity$763,798  $786,175 


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
 Three Months Ended March 31,
  2021   2020 
CASH FLOWS FROM OPERATING ACTIVITIES   
Net loss$(35,997) $(30,570)
Adjustments to reconcile net loss to net cash used in operating activities   
Depreciation expense 14,125   18,016 
Amortization of debt financing costs 410   410 
Share-based compensation expense 306   698 
Deferred income tax (benefit) expense (150)  102 
Gain on disposal of assets (2,733)   
Gain on settlement of restructuring agreement    (2,278)
Changes in operating assets and liabilities:   
Trade receivables, net (430)  (20,373)
Materials and Supplies 9   514 
Prepaid expenses and other current assets (1,766)  586 
Other assets (2,069)  1,877 
Accounts payable (878)  (6,288)
Other current liabilities and other long-term liabilities 13,822   6,032 
Net cash used in operating activities (15,351)  (31,274)
CASH FLOWS FROM INVESTING ACTIVITIES   
Additions to property and equipment (456)  (1,196)
Net proceeds from sale of Titanium Explorer 13,557    
Net cash provided by (used in) investing activities 13,101   (1,196)
CASH FLOWS FROM FINANCING ACTIVITIES   
Contributions from holders of noncontrolling interests     
Debt issuance costs     
Net cash provided by financing activities     
Net decrease in unrestricted and restricted cash and cash equivalents (2,250)  (32,470)
Unrestricted and restricted cash and cash equivalents—beginning of period 154,487   242,945 
Unrestricted and restricted cash and cash equivalents—end of period$152,237  $210,475 

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